Monopoly Investments would like to replace their existing computer system with a new, more modern system at a cost of R100 000. Additional installation costs for the new system is R25 000. The existing system was purchased two years ago for R90 000. The capital allowance is written off over a 3-year straight-line period. The existing system can currently be sold for R80 000. Net working capital will increase by R15 000 with the replacement of their existing computer system. Assume a tax rate of 28%. The after-tax proceeds from the sale of the existing system are:

R65 000

R80 000

R66 000

R94 000

R50 000